Industry Voice: Sponsored by Neptune
China has been one of the world's best performing markets so far this year with the CSI300 Index breaking into bull market territory. Much of this outperformance has been due to trade war optimism, largely on the back of Donald Trump declaring that he will push back the March 1st deadline for tariff increases to allow more time for negotiations.
Details of the deal are still uncertain, however it looks as though an agreement will be reached when Trump and President Xi meet in person at the end of the month. So far, it seems clear that China has offered to reduce the trade deficit by buying more US products, soybeans and energy in particular, along with assurances not to devalue the RMB to counteract the agreements. However, reducing the trade deficit only scratches the surface of the US's issues with China, which also include SOE subsidies, cyber security, IP protection and technology transfer.
The value of an investment and any income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the original amount invested. Investments in emerging markets may be higher risk and potentially more volatile than those in developed markets. Please remember that forecasts are not a reliable indicator of future performance. The content of this is formed from Neptune's views as at the date of issue. We do not undertake to advise you as to any change of our views. Neptune does not give investment advice and only provides information on Neptune products. Please refer to the Prospectus for further details.